The Central Bank of the Republic of Turkey cut its benchmark one-week repo rate by 250 basis points to 42.5% on 6 March 2025, extending an easing cycle that has now delivered a cumulative 500 basis points of reductions since the start of the year. The policy rate had peaked at 50% in 2024.
Annual consumer price inflation stood at approximately 39% in February 2025, keeping it well below the policy rate. The bank said the underlying trend of inflation had decreased in February.
Turkish policymakers have repeatedly emphasised that rate decisions will continue to be guided by monthly inflation data and the projections published in the bank's quarterly inflation report.
EASING CYCLE
The March reduction is the second cut of 2025, following an identical 250 basis point move at the January meeting. Taken together, the two steps bring the repo rate down from 47.5% at the close of 2024. The committee had held rates steady for several months before initiating the current easing sequence.
The central bank's next scheduled rate-setting meeting falls on 17 April. The bank said it would adjust the policy rate prudently on a meeting-by-meeting basis with a focus on the inflation outlook, and that the tight monetary stance would be maintained until price stability is achieved.